HC Deb 02 February 1983 vol 36 cc285-6
4. Mr. Knox

asked the Secretary of State for Scotland what percentage of total European regional development fund grants to the United Kingdom has gone to Scotland in each of the past three calendar years.

Mr. Alexander Fletcher

The percentage of the United Kingdom quota committed to projects in Scotland was 17.7 in 1980, 35.8 in 1981, and 25 in 1982.

Mr. Knox

Does my hon. Friend agree that those figures suggest that Scotland is doing very well out of the European regional development fund? Is he satisfied that the grants are sufficiently well publicised and that the public know about them?

Mr. Fletcher

I agree that Scotland is doing very well out of the European regional development fund. My hon. Friend never loses an opportunity to publicise the fact that Scotland is more and more dependent on grants from, trade with and exports to Europe. Opposition Members should not sneer at that.

Mr. Carmichael

Does the Minister agree that any contribution to Scotland from the European development fund is deducted by the Scottish Office from the money that would otherwise come from the Treasury, so that ultimately it comes out of the same pocket?

Mr. Fletcher

I disagree with the hon. Gentleman. The money that comes from the regional fund adds to the total amount of regional assistance not only for Scotland but for the whole of the United Kingdom. Regional development funds which go to local authorities are extremely helpful in reducing borrowing charges and interest rates.

Sir Russell Fairgrieve

Will my hon. Friend bear in mind the number of jobs that would be at risk in Scotland if we pulled out of the Common Market and that the synthetic remarks made by the right hon. Member for Glasgow, Craigton (Mr. Millan) and by the hon. Member for Fife, Central (Mr. Hamilton) are trivial compared with the effect on unemployment if such a disastrous policy were ever invoked?

Mr. Fletcher

Yes, Sir. Scotland would lose tens of thousands of jobs if the Labour party ever succeeded in withdrawing the United Kingdom from the European Community. I am convinced that most Labour Members are aware of that, although for some reason they are scared to admit it.

Mr. Harry Ewing

If all that aid from the European regional development fund is being of such help to local authorities, why did the Minister agree to cut Government regional aid to Scotland by 30 per cent. in the financial year 1979–80?

Mr. Fletcher

As the hon. Gentleman may know, Scotland is still the priority area in the United Kingdom. The largest single special development area in the United Kingdom is in Strathclyde. There can be no question but that Scotland benefits from the Government's regional policy and from the EC's regional fund.

Mr. Roy Jenkins

I agree that Scotland does very well in relation to the United Kingdom and Europe considering the size of its population. However, does not the Government's refusal to apply the strict principle of additionality—allowing the money to be additional to what would otherwise be spent—reduce the advantage and militate against us obtaining even more from the European regional development fund?

Mr. Fletcher

I am surprised that that comment should come from a former President of the Commission. The right hon. Gentleman will know that the policy that we have adopted is the same as that undertaken by most—if not all—of the other countries in the Community.

Mr. Myles

Does my hon. Friend accept that areas such as Banff, Buckie and Keith in my constituency find it a bit hard that the regional development grant has been withdrawn and they cannot now benefit?

Mr. Fletcher

I sympathise with my hon. Friend, but, as he knows, the regional policy is applied throughout the Community in areas that have been allocated for regional development. He will also be aware of the assistance that is available to his area, particularly from the agricultural fund and other EC sources.